State hospitals for persons with mental health disorders: patient funds.

Assembly Member Bonta's mental health funding legislation expands the authorized uses of state hospital patient funds, allowing administrators to direct Benefit Fund expenditures toward patient welfare initiatives alongside existing education and entertainment programs.

The measure builds upon current patient fund management practices, where hospital administrators may deposit patient-approved interest earnings into facility-specific Benefit Funds. While maintaining requirements for patient consent and input from patient governments, the bill establishes new transparency measures requiring written notification to patients and their representatives when new expenditure options become available. Hospital administrators must also provide itemized billing statements when patient funds are used for care services.

To enhance oversight, the Director of State Hospitals must submit annual reports to the Legislature by August 15 detailing how each facility's Benefit Fund was utilized in the previous fiscal year. The legislation preserves existing protections regarding interest-bearing accounts and investments, which require patient authorization and Department of Finance approval for fund management decisions.